|Institution:||University of Minnesota|
|Keywords:||behavioral game theory; corporate governance; corporate social responsibility; experimental economics; game theory; public goods|
|Full text PDF:||http://hdl.handle.net/11299/174742|
A public goods environment was constructed to simulate a dilemma in which corporate managers choose between acts of corporate social responsibility and acts of profitability. An experiment was conducted to determine the effect of a penalty for contributing above a specific level. The penalty has significant effects, encouraging free riding and suppressing contributions at all levels, even though most contributions would not have triggered the penalty.